PennyMac Financial ServicesPFSI +3.88%71 Net Margin % is 8.52% as of Mar. 2026, which is 24% below its 10-year median of 11.14. GuruFocus rates PFSI with a GF Score™ of 71/100 and a GF Value™ of $137.55 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 1,526 Banks companies, PennyMac Financial Services ranks worse than 87.75% on this metric.
The historical rank and industry rank for PennyMac Financial Services's Net Margin % or its related term are showing as below:
PFSI'
s Net Margin % Range Over the Past 10 Years
Min: 5.47 Med: 11.14 Max: 41.67
Current: 10.15
PFSI's Net Margin % is ranked worse than 87.75% of 1526
companies
in the Banks industry
Industry Median: 26.97
vs PFSI: 10.15
PennyMac Financial Services (NYSE:PFSI) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
PennyMac Financial Services Net Margin % Related Terms
PennyMac Financial Services Net Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Mortgage Finance subindustry, PennyMac Financial Services's Net Margin %, along with its competitors' market caps and Net Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
PennyMac Financial Services Net Margin % vs Banks Industry
For the Banks industry and Financial Services sector, PennyMac Financial Services's Net Margin % distribution charts can be found below:
* The bar in red indicates where PennyMac Financial Services's Net Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
PennyMac Financial Services (PFSI) has a Net Margin % of 8.52% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on PennyMac Financial Services and its competitors. This is 24% below median its historical median of 11.14. Over the past decade, PennyMac Financial Services' Net Margin % has ranged from 5.47 to 41.67. According to the industry distribution chart, PennyMac Financial Services ranks #1339 out of 1526 companies in the Banks industry, placing it in the top 87.7%.
Is PennyMac Financial Services' Net Margin % too high?
PennyMac Financial Services' current Net Margin % of 8.52% is 24% below median its 10-year median of 11.14. Over the past 10 years, this metric has ranged from a low of 5.47 to a high of 41.67. The Banks industry median Net Margin % is 26.97. PennyMac Financial Services' value of 8.52% is 68.4% below this industry median. Based on the distribution chart, PennyMac Financial Services ranks #1339 out of 1526 companies in the Banks industry, which is in the bottom quartile relative to peers. Overall, PennyMac Financial Services has a GF Score™ of 71/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does PennyMac Financial Services' Net Margin % compare to FMCC and WD?
According to the Banks industry distribution chart, PennyMac Financial Services ranks #1339 out of 1526 companies for Net Margin %. This places PennyMac Financial Services in the lower half of its industry. The industry median Net Margin % is 26.97. PennyMac Financial Services' value of 8.52% is 68.4% below this benchmark. Historically, PennyMac Financial Services' own Net Margin % has ranged from 5.47 to 41.67 over the past decade. While the company's 10-year median is 11.14 vs. the industry median of 26.97, PennyMac Financial Services has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Banks company?
The median Net Margin % among Banks companies is 26.97, based on 1,526 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PennyMac Financial Services's current Net Margin % of 8.52% is 68.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on PennyMac Financial Services and its competitors. For the Banks industry, the median Net Margin % is 26.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PennyMac Financial Services's current Net Margin % is 8.52%, which is 24% below median its own 10-year median of 11.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PennyMac Financial Services stock overvalued right now?
Based on GuruFocus' analysis, PennyMac Financial Services (PFSI) is currently considered Possible Value Trap. The stock's GF Value™ is $137.55, compared to a current price of $83.35 — trading 39.4% below its estimated fair value. The current Net Margin % is 8.52%, which is 24% below median its 10-year median of 11.14 and 68.4% below the Banks industry median of 26.97. PennyMac Financial Services' overall GF Score™ is 71/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For PennyMac Financial Services (PFSI), the current Net Margin % is 8.52% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is PennyMac Financial Services (PFSI) Overvalued in 2026?
Based on GuruFocus' analysis, PennyMac Financial Services stock appears to be undervalued.
The current stock price of $83.35 is trading 39.4% below its estimated GF Value™ of $137.55.
GuruFocus considers PennyMac Financial Services to be Possible Value Trap.
Key valuation signals for PFSI:
Net Margin %: 8.52% (24% below median its 10-year median of 11.14)
GF Value™: $137.55 vs. price of $83.35 (39.4% below fair value)
Industry Position: 68.4% below the Banks median (#1339 of 1526)
No single metric tells the full story. See the PFSI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PennyMac Financial Services Inc is a specialty financial services firm with a comprehensive mortgage platform mainly focused on the production and servicing of U.S. residential mortgage loans. The firm is also engaged in managing investments related to the U.S. mortgage market and provides products and services that leverage technologies to support customers. The company operates through two reportable operating segments: production and servicing. The production segment performs loan origination, acquisition, and sale activities, while the servicing segment performs servicing and subservicing of loans, early buyout transactions, and servicing of loans sourced and managed for PMT. The majority of revenue comes from the production segment.
71GF Score
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